The Building Pest Control Services industry faces tight controls on its operations from stringent environmental regulations. Consumers are also wary about applying pest control chemicals around the home and are seeking more environmentally friendly and less toxic alternatives. However, stricter health regulations now require regular monitoring and control of pests across business and commercial properties, particularly in the food and hospitality industries, which boosts demand for pest control services. IBISWorld industry analyst Alen Allday states “pest control providers are sensitive to trends in both residential and non-residential construction, as well as demand from the owners and users of established buildings.” The restrictive economic environment over some of the past five years particularly affected demand for pre-purchased pest inspections and reports, especially for housing, while many business clients reviewed the frequency and level of service required. However, positive economic factors 2012-13 and 2013-14 have benefited the industry.

In 2013-14, the Building Pest Control Services industry is forecast to generate revenue of $1.2 billion, up 3.4% from the previous year due to improved economic conditions and higher demand. In particular, stable non-residential building construction activity and fewer business client failures are expected to contribute to industry growth. There are expected to be almost 2,900 enterprises operating from about 3,160 locations during 2013-14, after small increases over the year. About 8,380 employees are estimated to work in pest and weed control during 2013-14, up 2.9% over the year, with total industry wages of $354.1 million. Industry revenue for the five years through 2013-14 is estimated to grow at an annualised 1.9%. According to Allday, “some improvements in chemicals to eradicate pests are assisting the industry, particularly in termite control. These processes are improving pest control outcomes, although they are subsequently resulting in customers requiring less frequent visits and treatments or applications.” The industry will have to continue to deal with ongoing strict regulations relating to the storage, handling and use of chemicals.

The Building Pest Control Services industry has a low level of market share concentration. Although two of the three largest companies are moderate in size and are owned or associated with major foreign firms, the majority of operators in this industry are small, private companies. This stems from the large number of small business operators and low barriers to entry, resulting in a highly fragmented industry structure. For more information, visit IBISWorld’s Building Pest Control Services report in Australia industry page.

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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